Crisis? What crisis? Despite Swelling climate threats, Miami And Naples Home prices Rocket

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The pounding visited on Florida’s central Gulf coast in recent months has not dissuaded people from moving to most of the state’s coastal cities.

That’s according to a study of 172 cities by Oxford Economics, which reports that, “Housing has become less affordable across all metros,” with Miami and Naples being among the most expensive, with the lack of affordability in each soaring.

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The calculation was based on the total monthly mortgage payments after a 20% down payment, property taxes and homeowners’ insurance payments. To be “affordable,” these three elements cannot exceed 28% of the borrower’s income.

The numbers for Naples and Miami were were huge. “Naples and Miami saw the greatest increase in required income needed to afford the median housing costs,” the report said, with figures being at 134% and 124%, respectively. Additionally, the two Florida metros’ five-year house prices grew by 81% and 73%. About 14% of residents in Naples could afford a house there; meanwhile, the Miami number was closer to 17%.

New residents flood in
The median price of a home nationwide was $409,000, with the income required being $104,000. Based on this, only 36% of Americans could afford a home. The number is worse than five years ago, primarily because of the rise in mortgage rates. The first set of prices was in the third quarter of 2019, and the most recent was in the third quarter of this year.

Despite climate risk and it accompanying rise in water levels and the number and severity of storms, the extraordinary aspect of the data is that people continued to move to Florida in great numbers over the last five years. The increase in home prices is almost certainly due to the demand this inbound population created.

If this survey is taken a year from now, the trend may reverse based on whether cities such as Miami and Naples take a similar battering to the one that rained down on Tampa in September.